29 January 2010

Mind F**k

Many bankers today are only lending money to the very best customers and putting the rest of the money borrowed at zero percent from the FED into, ironically enough, Treasury Bonds at 3% interest, therefore bringing in pure profit to the bank, with no risk of default. To many smart bankers, this is a prudent, if not full-proof choice. Strangely enough, as a result of this kind of wise thinking on the part of bankers, the Fed is in reality just printing money to finance its own debt.

Also, the Fed is also buying Treasury Bonds directly, in order to finance about 15% of the current year’s deficit of $1.8 trillion?

No comments:

Post a Comment

All comments are welcome!
Please use the Name/URL option (you don't have to register, just enter a screen-name) or sign your anonymous post at the bottom.